North Texas Tollway prices $1 billion in revenue refunding bonds; Miami-Dade sells $442.855 million

By Cristal Cody and Sheri Kasprzak

New York, July 11 - A light day for pricings was led by the North Texas Tollway Authority System, which released the pricing terms of its $1 billion second-tier revenue refunding bonds.

The bonds priced on Thursday with a 6.032% true interest cost, a source with the issuer said Friday.

The series 2008F bonds (A3/BBB+/) priced with 5.75% to 6.125% coupons to yield 5.8% to 5.99%.

"They were oversubscribed by about 150%," the source said.

The bonds have serial maturities from 2030 through 2038.

Lehman Brothers was the senior manager of the negotiated sale.

Proceeds will be used to refund $697.29 million of the series 2007 bond anticipation notes. The authority plans to refund the remaining $767.065 million of the notes with an additional $947.905 million refunding sale by Nov. 19.

Miami-Dade's sale

Elsewhere, Miami-Dade County in Florida released the pricing terms on its previously announced $442.855 million sale of series 2008 water and sewer revenue refunding bonds.

The bonds (A1/A+/) were sold on a negotiated basis with RBC Capital Markets as the lead manager.

The sale includes $68.3 million in series 2008A and $374.555 million in series 2008B bonds. The 2008A bonds are due from 2009 to 2022 with coupons from 3.25% to 5.25% and yields from 2% to 4.54%. The 2008B bonds are due 2013 to 2022 with a term bond due 2029. The 2008B serials have 5% to 5.25% coupons and 3.42% to 4.54% yields. The 2029 term bond has a split coupon, one 4% and one 5%, both yielding 4.28%.

Proceeds will be used to refund the county's series 1994 variable-rate bonds.

Earlier this week, Rachel Baum, the county's chief financial officer, said turmoil with the insurer of the 1994 bonds sparked this offering.

"As the insurer has been downgraded, the bonds were trading at a very high interest rate," said Baum. "As such, we had no choice but to refund the bonds into another mode."

Connecticut State Revolving Fund

Leading upcoming bond sales, the Connecticut State Revolving Fund plans to price $200 million general revenue bonds on July 23, Sharon Dixon Peay, financial administrator, said Friday.

The series 2008A bonds (Aaa) will be sold first in a two-day retail order period July 21-22.

"We make it available to individuals because we have a good track record with retail sales," she said.

The bonds have serial maturities from 2009 through 2028.

M.R. Beal & Co. is the senior manager of the negotiated sale.

Proceeds will be used for wastewater treatment and public drinking water projects.

New York issues on tap

In New York, issuers expect to refund and price more than $4 billion of bonds in sales through September, according to a sale calendar from the New York State Comptroller's Securities Coordinating Committee.

On the immediate horizon, the City University of New York plans to price $215 million fixed-rate refunding bonds through the Dormitory Authority of the State of New York the week of July 14.

The New York City Municipal Water Finance Authority expects to refund $353 million and price $100 million fixed-rate bonds for water and sewer capital projects on July 16.

Looking ahead, New York City plans to price $800 million fixed-rate general obligation bonds the week of Aug. 4.

The New York City Municipal Water Finance Authority also intends to price $350 million variable-rate bonds for water and sewer capital projects on Aug. 5.

Reading district bond sale

Looking to Tuesday's pricing action, the Reading School District in Pennsylvania plans to sell $100 million in series 2008 general obligation bonds Tuesday, said a preliminary official statement.

The bonds will be sold on a competitive basis with Concord Public Finance as the financial adviser.

The bonds have a serial structure, but the maturities have not been set.

Proceeds from the sale will be used for the acquisition, construction, reconstruction, expansion, renovation, equipping and furnishing of existing and new school buildings in the district, as well as paying capitalized interest on the bonds.

Lucas County plans sale

Also ahead this week, Lucas County in Ohio intends to price $91.14 million in general obligation bonds and bond anticipation notes on Thursday, said a sellside source familiar with the deal.

The bonds (MIG1//AA-/F1+) will be sold on a competitive basis.

The sale includes $46.14 million in tax-exempt arena improvement limited tax general obligation bond anticipation notes, which are due July 30, 2009; $30 million in taxable arena improvement limited tax general obligation bonds, which are due July 30, 2009; and $10 million in taxable arena improvement limited tax general obligation BANs, which are also due July 30, 2009.

Proceeds from the deal will be used to retire $18.5 million in outstanding BANs. The rest will be used to finance a portion of the costs of construction of a new minor league hockey arena.

Washington Health deal

Finally, the Washington Health Care Facilities Authority intends to price $128.52 million insured mortgage revenue bonds for the Highline Medical Center, according to a preliminary official statement.

The series 2008 bonds (Aaa/AAA/) are insured by Financial Security Assurance Inc.

Banc of America Securities LLC is the senior manager of the negotiated sale.

Proceeds will be used to refund and redeem the outstanding $15.38 million from series 1993 revenue bonds and $16 million from series 1998 revenue bonds; pay for costs to renovate, acquire, construct and equip health care facilities and pay the costs of credit enhancement for the series 2008 bonds.

Additional information was not available on Friday.

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